Students: Don't graduate in debt!

Amazing to think that 60% of students graduate in debt. It's not a great start to your working life, but with credit card companies throwing all sorts of rewards at you (and not particularly good ones either), students are seen by some providers as an easy sell.

If you're a student, and you need help with your finances, the best advice is not to jump on the first credit card offered to you. Perhaps a card isn't even appropriate - a loan might be better - but if you do need the convenience of plastic, do your homework first. Make sure that you're the one approaching them, not the other way around.

CTV.ca have a great article on this subject: see http://www.ctv.ca/generic/generated/static/business/article1677117.html to read more.

Credit cards with rewards keep people spending

http://www.dispatch.com/live/content/business/stories/2010/08/15/incentives-keep-wary-consumers-spending.html?sid=101

According to this article on dispatch.com, credit card debt is falling, which probably goes some way to explaining why credit cards with rewards are being ramped up, and being made more attractive to consumers.

After all, if you're being incentivized to use plastic with cash back and other rewards, then you're likely to use your card more often. On the other hand, if there are no rewards, you can be pretty sure that it would leave a lot of credit card companies in a dire situation.

We may be living in difficult economic times, but it's good to know that those that continue to spend will at least be rewarded a little for their efforts. If you can afford it, now is the best time to take advantage of the rewards being offered by credit card companies.

Credit Cards with Rewards

Credit cards with rewards seems a little contradictory: don't the credit card providers just charge high fees, and tell you that their token benefits are better than they really are?

It's true that there is a lot of money in credit cards, and yes, they do charge a lot of people a whole lot of money, in both interest and fees. But it's also true that if you pick the right card, with specific goals in mind, then the rewards can provide real benefits to you.

People forget just how convenient credit cards actually are, and to be able to order your shopping from the comfort of your own home could be seen as a wonderful benefit in itself. But naturally, in such a competitive market, you can, and should expect more than that.

Maybe your credit score is low, and you need a card to help you improve it. Try a 0% APR card with fixed fees and monthly reports to the major credit bureaus. With a little self discipline, they can help you build up your rating again and open a lot more doors for you over time.

Or perhaps you're paying too much in interest: see if another card provider will do a balance transfer at an introductory rate, to help you claw your way out of debt.

And if you already have a good credit rating, find a card that offers you miles for purchases, and use them for your next vacation.

These are just some simple examples, and over the coming posts, we'll discuss some more ways in which credit cards with rewards can benefit you!